According to a survey by Zillow,  Boston homebuyers are confused when it comes to some of the most basic aspects of mortgages. Those interested in buying real estate in Boston and real estate in other areas of the U.S. answered Zillows basic mortgage survey questions wrong 46% of the time!
Simultaneously, 57% of the people thinking about buying a home who replied to the survey dont know how ARMs (adjustable rate mortgages) work. 34% of those surveyed dont understand that lender fees can be negotiated and change from bank to bank. Many think that lenders all charge exactly the same amount as required by law. Untrue!

Zillow Mortgage Marketplace Director Erin Lantz said, Most people wouldnt jump away from an airplane if they didnt know how to make use of a parachute, yet every year many buyers invest in the largest loan they'll take out in their lifetimes without understanding essential details about mortgages. By simply spending a few hours researching how a mortgage works, and by shopping around which are more competitive rates and fees, buyers can help to save a lot of money.

As well as the shocking information above, Zillows survey also uncovered the following statistics (all of which were prospective homebuyers)

45% think they ought to always buy mortgage discount points
55% dont understand that mortgage rates change as often as throughout the day
37% believe that prequalification for any mortgage means the financing has been secured
42% dont understand that FHA loans are for sale to everyone not just first-time buyers.
Still unsure of your mortgage knowledge Contact us to discuss any queries you might have regarding purchasing real estate or acquiring financing